The Jon Sanchez Show
10/24-How to obtain the lowest mortgage rate possible
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Dwight Mallard, synergy win, Lindy. And how are you, big D? I'm doing good. Better today than yesterday, right? But not as good as you were a couple weeks ago. There you go. There you go, which we'll talk about. Yeah, no, so yeah. I just take it one day at a time now, right, John? One day at a time. It's like man in the Bible. One day at a time, right? One day at a time. There you go. Well, so you got to be like me. You got to take it one hour at a time, or sometimes one minute at a time, because it changes that fast. Well, it's your world and my world, that's for sure. Yeah, how are you doing, then? Doing good. Doing a little frustrated these last couple of days. McDonald's being the culprit of some weakness yesterday. And then today, we get IBM. We get Honeywell. We get Boeing just really keeping a lid on the Dow. And if it wasn't for those three in their terrible performance, we probably would have had a heck of a day on the Dow. But suffered a little bit of loss there, but we made it up on the NASDAQ side. So yeah, it's just par for the course. As I was mentioning to a client today, this is exactly what we warned our clients about in our listeners. Matter of fact, all of you, at the beginning of the year, when Jason and I said, buckle your seatbelt, come September, October, November, it's going to be a wild ride. And I'm going to throw in December now, because now we're all up in the air as far as rate cuts, and so on, so forth. So it makes for an exciting day, and always something to talk about on the radio, right, guys? Yeah, and John, what do you think? How do you think the market, there's lots of things going around about the election? It's not going to be certified. Any chaos there, is that going to be really negative for the market? That's a great question, Dwight. All we can do is go back to when it's happened in the past, and the market was actually very resilient. If a member serves me correctly, it kind of gave it a pass card. And what was it? When Gore, I think Gore was the last one, right, when they couldn't certify things, and redoing counts, and so on and so forth. Now, if I remember, the market was, like I said, it was actually very resilient to it. And I think, to your point, Dwight, and again, excellent question, I think everybody, at least everybody I'm talking to, I have yet to come across one person that says, we are going to know on the evening of November 5th, who the next president's going to be. Everyone's like, there's going to be counts, and recounts, and lawsuits, and so on and so forth. So I think as long as it doesn't drag on more than a couple of days, I think the market will give it a pass card again. But if it drags on to a week or longer, yeah, then we could definitely have some problems, because you've got a lot of uncertainty, which of course is the number one thing this market hates. - And do you think it would affect both markets, the bond and the treasure? - Oh, absolutely, absolutely, absolutely. Yeah, absolutely, yeah. You better believe it, you better believe it. Yeah, 'cause it's, and then also, I don't know about you guys, but this is what's interesting. This is the conversation that I keep having with clients and listeners and things, and that is, the stock market, I'm going to repeat this again. I've said it so many times. The stock market does not really care who the president is, right? They don't care for the Republican or Democrat, because they know that presidents can, they can lay out a policy like a CEO does. You can lay out a policy, but it's the soldiers that will implement that policy, meaning the House and the Senate. But I'm not hearing a lot of talk about, you know, the House and the Senate side of the election. And I think that's really a mistake, because, you know, we have a great podcast we did, I don't mean to brag, but it was a really, really good one a few weeks ago, and you can go to your favorite podcast distributor and look it up. I forget what we titled it, but basically what the podcast was about is we went through and compared Harris versus Trump and all the economic items that they want to, that they said they're going to be able to do. And, you know, obviously the list is a mile long for Harris and we'll call it three quarters of a mile long for Trump. But what was interesting is we were able to determine all of these different things that they, each one of them proposed, like almost none of them. I think I counted 90% of what they proposed. They have to get congressional approval. The other 10%, yeah, they can do it on their own, but they were minor things. So that's what we always tell people. Don't get excited about the election results. Pay more attention, what's going to happen in the House and the Senate, and then we can start to, you know, make some strategies and decisions as to what needs to be done portfolio-wise and, you know, tax planning-wise and so on and so forth. But, you know, way too many people put too much credibility from an economic standpoint what our president can do. And they really don't have a lot of power when it comes to the markets. They really don't. But I guess either way, it's going to be a bumpy ride, right? You know, like you said, probably till end of the year, you're going to just see some bumps. Yeah, absolutely. And then you always get a bit of a market relief after the election, again, no matter who wins, just because, again, we can check that off the list as far as what our worries are, right? So put that aside, but, yeah, it's, I'm in the camp. I don't know about you guys. Corey, let's get your opinion. Do you think we're going to have the results on the evening of November the 5th? Do you think it's going to drag on? I don't, I don't think you'll have official results, but I think everybody will know what's going to happen. You know, and that's usually how it is, right? They may not call it one way or another, but they'll have a decent idea. And I agree with you on your point with the House and the Senate. And either way, it's going to be a close call. And as we've seen over the last eight years, even if they do get control of one or both houses, they still can't get anything passed because it's such a slim majority of some may jump through. - Right, so unless there's just a massive sweep, then, you know, I hate to call our two candidates liars, but that's what they're, you know, everything they're purporting that they're going to do. They have no way of doing it. It would take a miracle. - It works, anyway. - And it's, and I keep trying to bring this point up with everybody, it's because, again, anybody is a fool, an absolute fool to vote for one or the other, based upon what they say they're going to do. Again, if these are, if you're voting for, well, let's say, for example, like Harris, where she's saying, oh, you know, we're going to give $50,000 to start a business, and we're going to give $25,000 for first-time home buyers, and those type of things, it's nothing but lies and vote-getting rhetoric. That's it. That has to be approved by Congress. Now, again, if there's a slide, then she'll look like a hero, right? If it's all Democrats on both sides, or they have the majority, then she looks like a hero, and everybody goes, hey, she promised she was going to do this in her campaign, and she's going to do it. Same with Trump and many other things that he talks about. I'm not picking one candidate over the other, as far as they're both saying a lot of things that are just not true, that they can get done. But again, that's how they go get votes. They make all these promises, and then no one holds them accountable, and then we move on for another four years, and battle with it. So how about you, Dwight? Do you think that we're going to have the results right away? - Yeah, I agree completely. And I'm trying to stay close to the fire, not in it. And I just think either way this goes, I think housing is still going to be a challenge, and interest rate is still going to be a challenge. I think you said it, and I echoed it, from Tuesday that you think probably next spring, or something will really start to see the rates maybe improving on a consistent basis, but until then, hence the reason for the important topic, because people just got sucker punched on rates here in the last month. And so it's going to be a challenging time, at least for the next, I believe, next four or five months. - Yeah, no, I 100% agree. And you may be a little bit on the generous side, as far as that time period, because it all comes down to us, we're going to discuss, and I'll tell everybody what we're going to be talking about here in a moment. But it really comes down to one issue, and that is, is the economy strong? Corey, you bring up this point over and over again, and I want to echo what you've said, and then get your opinion. As long as the economy is strong, I.E. people have jobs, the economy is going to plug along, and things are going to be okay, right? No major increases, no major decreases in job growth, or any of the major economic reports. As long as we kind of stay, I hate to use the term, but I'll use it somewhat status quo, then everything will be fine. And things will be doing just fine. But Dwight, it's now to a point, as we go over this data with everyone tonight, it's now to the point where, unless we have some type of cataclysmic event, and pick your flavor of what that could be, where everyone's just piling into the bonds to drive the yields down, I don't know what's going to stop your train, I really don't, and this is what's got a lot of people really scratching their head, is saying, what's going to cause these rates to come down? And we all know bonds go up, yields come down, then mortgages, and so on and so forth. But the Fed, it's like we cautioned, long before this September 18th rate cut, we cautioned about this, don't think because the Fed's cutting the Fed funds rate, which is the bank overnight lending rate, that you're going to see immediate reaction to the bond market. The bond market folks, I'll emphasize this again, is an animal in and of its own. They don't care really what the Fed's doing, they're looking at economic data, they're peering into the crystal ball, trying to figure out where the economy is going, and that's what those bond traders do, those bond traders are the ones that really truly determine the interest rates, and therefore the mortgage rates, and so on and so forth. It is not really the Fed. The Fed is this kind of a little light out there, it says, hey, follow me, and the bond traders can go, now we don't want to follow you, or yes, we will follow you. And folks, you're going to be very surprised when we have this data for you, and say, where we were on September the 18th, when we got the half a percent cut, and where we are now, in regards to the 30-year mortgage rate, Dwight kind of mentioned this on Tuesday, that's why I wanted to kind of pick up on this point, and talk about it a little bit more, because it's mind-blowing in this poor man, along with other mortgage professionals, you know, I'm sure you're answering the question, I wish you had a nickel, right, for every time that people are going, wait a minute, the Fed cut rates, what do you mean my rates, you know, higher now than when you quoted me two weeks ago, or three weeks ago, or a month ago, and it's not Dwight or the other mortgage professionals, it is purely what this bond market is doing, so our topic tonight is gonna be really fun, in the summary of tonight's topic is, how to obtain the lowest mortgage rate possible, right, and because here's the deal, since September the 18th, when the Fed cut the rates by half a percent, guess what, mortgage rates have risen from 6.33%, that was the national 30-year mortgage average, to now 6.91%, and so that is an increase of 58 basis points, over half a percent in a very short period of time, so what we're gonna do now, we're gonna try to solve the problem for you, we can't control interest rates and mortgage rates, but what we can do is share with some of the great strategies Dwight and Corey have, as far as things like rate buy downs, loan concessions, and many, many more strategies these gentlemen have, to get you the best rate possible, we'll talk about, hey, you know what, maybe you need to save for a larger down payment, or you need to improve your credit score, all these different things, 'cause the bottom line is, again, we can't control rates, but there's a lot of things in your life that you can control, which will get you the best rate possible. Let's turn it over to Kristen Snow, she's in there right now, Traffic Center, hi, Kristen. Welcome back to the John Sanchez Show on Newstocks 780K, which is Core Edge of Edge Realty, and Dwight Mallard of Synergy One Lending. All right, so here's how we finished in this crazy session dominated, really by three stocks on the downside, and I'm referring to the Dow. We finished down 140 on the Dow, we were up nearly 200, we were down over 200, kind of finished midstream, this market just could not get any traction because of the weakness specifically, that we experienced starting in the after hours yesterday, and continue to get right into today's close, and that was the weakness in IBM that I'll share with you in just a moment. All right, so 141 loss on the Dow, 42,374, good day for the NASDAQ, up 139.76%, SAP rose 12 points or 0.21%. The slight pullback in oil prices, 9/10 of a percent decline, 70, 18 a barrel, gold recovering from yesterday's drooping, a $19.50 increase, 2007, 48, 90, and then a four basis point decline on the 10 year treasury to finish at 4.2%. Mr. Mallard, let's talk mortgages, get us warm up for our topic tonight, how to obtain the lowest mortgage rate possible. How'd we do on the 30 year today? - Well, you know, it was in your show, T's, that we're at 6.91 on the 30 year fixed average according to more news daily, which, John, I mean, we'll talk about that just way up from what we were just a day or two before the feds, you know, reduction of rates. So to your point, there's just now the creativity, the incentives, everything's back on the table again, to start moving homes. So it's, yeah, it's uncomfortable, you know, to your point, I don't see anything on the horizon that would initiate declines in rates. - Mm-hmm, mm-hmm, exactly. Corey, what'd you think of today's new home sales report? - Oh, I didn't see it to be honest with you. I heard about some of it and I was just reading the article that Dwight had sent us during the show. But there, you know, like I mentioned on Tuesday, we know what the builders are doing. We know as far as keeping the sales prices up, kind of keeping the revenue up, but they are paying to bring these mortgages down, which, you know, God bless them, they have the right to do and they have the money to do it. But as we're talking about a month ago, that cost was much less than it is today. And so begs the question of how long A, will they do it? And B, what's it gonna be to their bottom line? I mean, at the end of the day, they can slot it for a certain amount of time before the market gets chumpy or they switch tactics. - So we were up 4.1% August to September on new home sales nationally. But Corey, I think a bigger question is this, and I haven't mentioned this in a while, but now that we're talking rates and how stubborn these rates are at this point. Corey, there was a lot of hope, prayers, anticipation that the commercial mortgage market was going to dodge a major bullet, because when we started to see the rates come down, leading up until the September 18th Fed decision, rates were coming down, there was a lot of chatter that again, some of these companies that are, you know, on the verge of default or have already defaulted, may be able to have a saving grace, right? That they could somehow get some lower money, lower cost money to survive until this commercial market turns around. That seems to go, has gone by the wayside right now. But I'm not hearing, I'm not reading, I'm not seeing analysts coming out, or economists coming out saying, hey, you know what, now that we're back to pushing 7% on a residential 30 year, that these mortgage companies or excuse me, these commercial companies are out of the woods yet. I mean, they didn't really get a chance to, unless they jumped on the bandwagon when rates are lower, they didn't really get a chance to take an advantage to that short window we had of lower rates. So what do you see, what do you hear at this point going on on the commercial mortgage, or excuse me, I keep saying commercial mortgage, the commercial real estate side of things since these rates are back up. Do we still need to work? - I think a lot more, it's going to take a lot. You've got to remember where these guys came from. If you and I were building a project three years ago, two and a half years ago, they've got performance set up but that all these things that were done, we took out a loan that was probably due to pay back if we were in a construction phase, they probably had to pay it back in 24 months, maybe 36. If we had anything long term, maybe we got to stretch to 10 years on an interest moment or somewhere in there. But we started out at two and a half, maybe three. And the numbers worked with a very slim profit margin. So the fact can cut a half a point if they want, they can cut a full point if they want. Unless they give back to where they were, and I'm not saying that they need to do that. I'm just saying the pain that's in the commercial real estate market, in my opinion, is already there. It's embedded in there. You just haven't seen it on the bank balance sheet yet. - No, not at all. - And unless they go back to zero, these guys aren't going to be able to refinance out it. Somebody's going to take the loss, whether it be the developer or the bank's balance sheet. But somebody has to take that loss. It's just a question of who's going to take it. - Is that the segment that you are most worried about, the developer, the company that's developing, let's say the housing track or the multi-unit apartment building, et cetera, or is it more so the guy or gal that already owns a commercial mortgage that maybe, I know a lot of them are coming to you, and what is that, 2025, the loans that typically take out a commercial for 10 years, I know that's real common, that a lot of those happen to be falling with that expiration around that 10 years where they need to refie. So where's your biggest concern, which can happen? - Well usually, I mean, it's such a wacky market, right? The rates have gone up, but the rents have stayed up, the prices have stayed up. They haven't gone inverse to each other. - So, I believe, Corey. - If you and I own this thing and we're, at the end of our 10-year term, hopefully we've got a little equity cushion so we can refinance, it's gonna be painful, maybe our cash flow is gonna go down and we're gonna have to throw a little bit of additional equity in there, but we can survive at the higher rate because nothing else is really dropped. I don't worry so much about the people that got into it when the rates were low, because again, if you're talking about the big developers, the big people that do this, they're set up an LLC, they can walk away from that thing and it sounds horrible, but bankrupt an LLC with all the emphasis on the bank. And so that's where, remember, we had all those panics of these smaller banks, like what's really hiding on their balance sheets and I would argue we probably still don't know exactly what's hiding on there, but they're probably gonna be the ones to see the majority of the paying 'cause the developers will walk away. And unfortunately, there will be some smaller players that get caught up in it, it's gonna, in my opinion, it's not gonna be anything like it was, you know, back in the Great Recession, but people are gonna lose some hard earned equity. - Okay, all right. Something we'll keep an eye on. Again, I don't think there's enough talk about it, of what you just enlightened us on. So yeah, again, something we'll continue to watch as these rates continue to move higher. What else can we do? Well, again, as I said earlier, there are some things that we can control and some things we can't. We can't control rates, but we can control things like the strategies Dwight's gonna lay out for us, like improving our credit score, larger down payment, choosing a shorter term loan. There's all these different things, loan concessions, and you're gonna learn about them when we come back on our topic, how to obtain the lowest mortgage rate possible, according to Dwight. Turned over to Greg Neff. He's got news, traffic, and weather. Hi, Greg. Welcome back to the John Sanchez Show on Newstalk 780KOH, with Kory Edge of Edge Realty, and of course, Dwight Miller to first, or center G1, Lindy. Now I just wanna say first, and it is first. It's just center G1. Speaking of first, there's nobody better. Nobody at the top of the line more than my friends over at SNW Tractor, and there are great coyote tractors, machines that will last you in the lifetime. They're so affordable. They do such an incredible amount of work. Let's go see Stan and the crew, and they can put a great package together for you. Where they at? How about 4880 East 9 Lane and Carson City? They're online at SNW Tractor.com, and they're phone numbers, 882-122-5, 882-1225. Once again, we finish down to 141 on the Dow, the NASDAQ rose 139, the S&P higher by 12, or just beginning our discussion this evening, or this afternoon on how to obtain the lowest mortgage rate possible. Alrighty, boys. There's a lot of tricks that can be done. It's not just all about the rates, right? There's a lot of things that our listeners can control that will enable them to have the best rate possible. Where do you want to start on this massive list? Well, I think we start on the credit score, because John, in my opinion, it's less about the loan to value and more about the credit score, because the credit score is going to drive all of your options, their opportunities, and your rate. So, I mean, it is very, very healthy for you, for people to get a copy of their credit report and understand what is made up of your score, because that's going to drive everything, John. And then from that point, the higher the score, the easier it is to start working on a rate, adjust your buy downs to one temporary permanent. So, the credit score is where I would start, because it's just really going to be the culprit of, because when we talk about 6.91, being the mortgage news daily average rate, that's for the AAA borrower. You get something that walks in with a 680 credit score, 690 credit score with 5% down. I mean, you're in the sevens easy, you know? And so, where you're seeing the shift right now, John, is that people that have a lower credit score than what you would want to see. Let's say in the 600s, they're defaulting away from conventional financing, even if, you know, and going to the FHA route. They're going to the government route, because it's more friendlier pricing. It doesn't have the adjusters, the adjusters that you would see, increases in rates or whatever, because of your credit score. So, it's amazing that right now, you're seeing a lot of FHA financing, just because of the credit scores. - Interesting, interesting. Anything you want to add to that? I know you speak with the credit scores. Dwight's going to give the pre-approval little letter based upon those credit scores. That is another point that's a must. - Yeah, you have to have the pre-approval rate. The market is still very competitive for buyers. So, if you're going to go out and shop and be competing against one other person or 100 other people, you've got to do the best possible thing you can for yourself to be competitive, which is to show I'm even going to pay cash, or most people need a loan. So, if you're going to pay a loan, show them that you've already talked about. Are you giving them the stuff? Dwight's pulling your credit report. A good agent's going to try to identify as a conventional as a PA as an FHA. So, as Dwight mentions, a lot of people are going FHA, which I don't blame them. I mean, it kind of also talks about how hard it is to qualify at these prices in some of the dev loads now, but you got to do what you got to do. And that may force you to not have as much negotiating leverage as you would want, because a seller's going to look at an FHA and say, okay, this is going to be a tad harder, potentially. So, I want to mitigate my risk and get a little bit higher price if I'm going to take this ride with this person. - Okay, okay. I like that from your perspective. Dwight, let's move off the list. And let's go to something I know you want to talk about. And we've spent quite a bit of time over the last year discussing this, but let's get a refresh on this next point. And that is the rate buy-downs. And Corey Chime in here, because that's part of the loan concessions. They all kind of come together. So, give us this as far as our ability to lower our mortgage rates by doing a rate buy-down. What is it and how does it work? - So, John, yeah, a rate buy-down can either come in two forms. It's either a permanent rate buy-down or a temporary rate buy-down. And the article I sent you demonstrated that when rates were going down, the builders didn't have to contribute as much because the rates were coming down. Now that they've reversed and started to go back up, now you're starting to see builders all over again and sellers and Corey's arena as well, having to put incentive money towards buy-downs. So, keep it very simple. Let's say today's rate is 7%. That's what the base rate you're working off of. I can spend money as a consumer or I can use incentive from the seller if I'm getting some to do a permanent buy-down. Let's just say I'm going to, instead of doing a temporary, I'm going to buy-down to six and a half. I'm going to take six and a half, it's going to cost me a point and a half to get six and a half. So, I'm going to go from seven to six and a half. So, I spent that money, I've got six and a half. The fear that I would have or most people are carrying with that right now, well, what rates in the next 18 months are at five, five and a quarter, well, then the obvious answer at that point times you'd probably do a refinance so all the money you used from the incentive to do the permanent buy-down didn't really benefit you, right? Because you bought it down and over the counter went lower. So, where most people are going right now, too, John, is they're doing a two-one buy-down, which is a temporary buy-down, two percentage points from the start rate to where your max rate would be. So, I'll give you an example. I just locked one yesterday at 5.625 cap rates in FHA, and I bought it down to a two-one buy-down. Start rate for this customer is 3.625 for the first year, 4.625 for the second year, and then 5.625, they're out. The theory behind that for the consumer was, "Hey, listen, I'm going to get the first year at 3.65. "That's, you know, stays way below what my threshold was." And if rates do go down, then I will refinance out of this temporary buy-down into a permanent rate. What I like about the buy-down real quick, John, is that any money you don't use that was escrowed to compensate for the buy-down rate goes to the principal reduction of your loan, so you don't lose it. So, what you don't use, you don't lose it, goes to your principal rate, your principal balance. Conversely, on a permanent rate buy-down, like I was saying, you bought down to six and a half, it's money spent, doesn't matter. So, people are really looking at the two-one buy-down and utilizing that to get just a great, you know, a 3.625. How do you argue with that, John? I mean, the first year. Yeah, yeah, and the second year, even a fourth, but, and you know what, John? - What was the-- - Uh-huh. - Okay. - Okay. - So, even if the market didn't cooperate, you're at a 5.65 right now for an extended period of time, okay, no biggie. So, but at least for the first couple of years, you got the benefit. - Was that a borrower just getting when you said, what was it, 3.625, when you said, yeah, you're eating-- - Oh, yeah. - I can't imagine. - Yeah, now keep in mind, it's very important, and Corey knows this, that a 2.1 buy-down, a temporary buy-down doesn't work unless the seller or the builder is paying the buy-down cost, 'cause all you're doing is paying what the difference of the payment would have been versus what you're getting upfront. So, you as the consumer would never pay for a 2.1 buy-down, because you might just take the higher rate, right? I mean, so, in an incentive, when you get an incentive from a builder or a seller, and that's an option, I have to look at the 2.1 buy-down all day long. - Corey, when we come back, enlighten us on the marketplace currently as far as how motivated are sellers these days to be involved in a seller, a concession like that, to get the 2.1 buy-down. I think that's a very important point, 'cause I know that that atmosphere changes quite frequently. All right, let's drop it up with Kristin Snow. She's in the right now. Sure, I fix it, Senator, hey, Kristin. Welcome back to the John Sanchez Show on his talk, 780-KOH. Mr. Corey, edge of edge, realty, your phone number, sir. - 673-6700. - Dwight Millard, Senator Joanna Linding, phone number. - 240-2022. - Beautiful, thank you, fellas. Okay, Dwight, excellent, excellent points. Corey, anything you want to add up to this level? Before we move on to the next one. - No, I think especially when you're talking about concessions. It is a confusing time, 'cause some of these people are qualified at lower rates, less than 30 days ago, and now maybe they don't qualify anymore, 'cause they didn't lock in, so concessions become critical if you want to close that deal. - Let me ask you both this. Okay, so Dwight, let's kind of go through a plan of action here. You give me the pre-approval letter. I go to Corey and say, let's start shopping. Here's my criteria. Corey puts in that we find the house. Corey puts in the offer. We go through inspections and so on and so forth. Appraisals, the whole thing, 30, 60 days somewhere around there. You then, again, Dwight, unless I've locked in my rate, I still don't know what rate I'm going to be finally getting. When that let's us call it 60-day due diligence period as I wanted to call it, expires. So what can I do to protect myself? Just a rate lock at that point for that 30 to 60-day time period? - Yeah, John, and you've got to be having these detailed conversations. Both Corey and I have that with our mutual clients. You've got to have it, and if they're comfortable with what I've given them, I always tell them, you're better off protecting what you have than not, 'cause I can't go get something that no longer exists if rates go up. And we've just demonstrated the last six weeks how volatile this market can be. So yes, I would protect the rate and then trust that the mortgage professional has the ability, should there be some crazy adjustment downward in the rates, they can roll me out and re-offer me something that would be more towards the market. - Perfect, let's rephrase that. If you lock me in, let's say at the current rate here, 6.91%, okay, you lock me in. And again, it's gonna take 60 days before final docs are ready to be pulled, et cetera. But let's say rates are up to seven and a half at that point. Or actually, let me reverse that. Let's say rates are back to, say, six and a half. Can I walk away from that rate lock, or is it gonna cost me to walk away? - I mean, typically, John, that's our industry as yet. You can walk away and go to another lender. That's why I say most lenders will try to accommodate a major movement downward. Even though the script is, hey, if rates went up, I'm not gonna charge you, but if they go down, why would you, because they have that right, right? I mean, there's, so that's why you're finding more and more lenders, John, are taking. We don't do, they're securing the appraisal fee up front, maybe even the credit report. Some are even taking an application fee because they want to try to make sure that any market movements would not sway the borrower to walk either way. So, yeah, so, but it's a game. And you've got to get people who understand it and been through a long time, but most companies have a provision on downward movement. There's a certain minimum they want to see before they'll renegotiate, but yeah. - Perfect, are you guys in the interest of time, let's, and I want to hear from both of you on this one. Oh, 90 seconds, here we go, we gotta go fast. Let's combine two points. The larger down payment and considering some points, right, to, again, try to get a lower rate, give us that. - Yeah, John, more down doesn't really help you unless it's significant. So, I would look more towards trying to get some sort of a rate, rate's gonna always be more beneficial than putting more money down. So, I've looked a way to find to buy down my rate temporary or per minute to get that. - Okay, perfect. Corey, wrap us up, what's your final point of advice for those out there right now that want to get this lower rate, everything we've talked about? - I don't think buyers should be scared to ask for concessions in their offer. And I think it's just very important that sellers understand the concessions. And then it goes back to the Realtors explaining it to them. And, you know, some of them are good at explaining some of them aren't. Sometimes we do it so many times, we think we've explained it before we have, but the seller needs to explain what it is and it's just a net number. - Y'all take, you know, $4.90 for your $500,000 house and you should take 500 with a $10,000 concession because it's the exact same amount of money. And that's, sometimes people don't understand that. - Yeah, I can see where the confusion can come in. You're absolutely right. Great explanation, we'll alleviate that concern. - Well, guys, let's keep our fingers crossed that we don't, you know, cross that 7% mark but wouldn't surprise me if we did. Excellent job boys, we do appreciate it. We'll do it again tomorrow on the John Sanchez Show. God bless, have a great afternoon. - This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sansheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker dealer and investment advisor. Member FINRA SIPC. Securities only offered in states, John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. Synergy One Lending Equal Housing Opportunity. NMLS #1907235, Dwight Mallard. NMLS #24129, phone number 775240222. The information provided today is for educational purposes only. 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